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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: Junkyardawg who wrote (27175)4/13/1999 2:16:00 PM
From: backman  Read Replies (2) of 90042
 
junkie:
RDOX is in the news watch hopper...now at 0.843 on 45,600 shares

explain something re: bid/ask spread
I'm looking at the bid/ask spread on MARG about 1/2 hour ago...spread was over 1 point on a $23.00 stock, with 345,000 shares trade (avg volume about 70K....has been under strong accumulation lately

what are the MM's doing when they create such a spread? saying they, as a group, have more product on hand to sell than they really want, and keeping the spread wide until the surplus is depleted?
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